LLC: Taxes, liability, and IRS elections made simple – YouTube video text script

A limited liability company, or LLC, is a business structure created under state law that is separate from its owners, who are called members.

In most cases, LLC members are not personally responsible for the business's debts and liabilities for federal tax purposes.

An LLC can be treated in different ways depending on the number of members and any elections made.

An LLC can choose how it wants to be taxed by making an election with the IRS.

A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless it files Form 8832 and affirmatively elects to be treated as a corporation.

There are instructions with the form that explain the classification option.

For more information on the limited Liability Company business structure, visit the Small Business and Self-employed Tax Center or type Limited Liability Company or LLC in the search bar on IRS.gov.